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Sectional title is especially favoured by older people looking to scale down as well as buy-to-let investors or young couples and it is growing in popularity - this is clearly demonstrated by the fact that in the past 20 years apartments and townhouses have comprised 26.6% of all new buildings in South Africa.
The benefits of sectional title generally include more affordability than freehold; it is perceived to be more secure than freehold and in return offers more peace of mind.
There is also little or no maintenance involved in owning sectional title when compared to freehold property, it is lock up and go, has sound resale value and also generally includes more modern finishes.
Most luxury, high and medium value properties fall into freehold property. One of the most appealing aspects of owning a freehold property is that an owner can do with the property whatever he or she likes and there are no complex rules to abide by.
In many instances the financial qualification of a buyer (and not any other factor) will influence whether that buyer can afford to buy a full title property because this frequently falls into a higher price bracket than a sectional title property.
Many people aspire to owning full title property, especially large South African families or families that have extended members of the family staying together.
In general there is a prevalence of freehold in the older, more established suburbs and this could present a dilemma to younger people earning lower salaries who want to buy their first property.
Another financial consideration is that freehold is more expensive to maintain because an owner does not only own the building, but also the land on which the building is located and this is not the case with sectional title.